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Subjective reaction on the part of consumers noticed by researchers when attempting to analyze consumer attitudes and their relationship to the market structure, particularly in the area of advertising or brand evaluation. For example, in theory, an individual should be able to evaluate each feature of a given brand independently and should have no difficulty giving a high rating to one feature while giving another a low rating. However, in practice, researchers have noticed that respondents have a tendency to give a high rating to all the brand's features if they like the brand, and a low rating to all the features if they do not like the brand. This is known as a halo effect.
The halo effect makes it difficult to evaluate brands in terms of their strengths and weaknesses. However, if a brand name has a quality reputation in the marketplace, the halo effect may work to the brand's advantage, particularly when the company is introducing a new product into the line.
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